The US Supreme Court ruled in 1992 that online retailers don't have to collect sales tax unless they have a physical presence in the state. Amazon is headquartered in Washington State, but Governor Brown has just signed a new law requiring it to pay taxes in California, on the grounds that Amazon's so-called "affiliates" give it a "presence" here. Amazon is trying to qualify a referendum for next year asking voters to turn that around.
Amazon, Traditional Business and the California Ballot
George Runner - California State Board of Equalization, Jerome Horton - California State Board of Equalization, Hut Landon - Northern California Independent Booksellers Association, Nick Loper - ShoeSniper.com